KPMG Develops Crypto-Asset Management Tool for Crypto Asset Management Companies
In a bid to finally step into the cryptocurrency market, KPMG LLP on Monday announced it has launched KPMG Chain Fusion, a patent-pending suite of advanced analytics capabilities, built around cryptoasset data and technology products to allow financial services companies and fintechs offer cryptoasset services on an institutional scale.
The director and co-lead of the Big 4 auditor’s Cryptoasset Services, Sam Wyner, said his team has been working on the project for about a year and started building the actual suite of tools in February.
“It’s not unusual for a bank to have tens of systems … and crypto companies have a similar problem where for their blockchain-based systems, they’re fundamentally different, the infrastructure behind them is fundamentally different from what’s happening in traditional systems,” he said. “The same problem that happens is ‘how do you connect all your blockchain based systems to traditional ones, and do that in a way that the organization is trying to operate in?”
The tool would allow businesses in the crypto space to run broad-based analytics on data. This was tested by KMPG through multiple use case modules based on actual feedback from companies in the industry.
Wyner said it would ensure that data on a blockchain matches the information recorded on an entity’s books.
“If you know you control an address and you think you have one bitcoin on it and you look at the address on the public blockchain, do you have one bitcoin or are you running a fractional reserve?” he said.
Other challenges included finding ways of being able to pull data from databases, including blockchain information, and still be able to run queries.
“We developed it all in a way that we were able to incorporate different types of technology providers and market data and infrastructure providers,” Wyner said.
While Wyner wouldn’t admit the name KPMG and reputation will help companies become more comfortable stepping into cryptoasset management, he did say risk is not something new in the financial services industry. However, KPMG is more comfortable with process risk and control.
“At least in my career this is one of the first times I’ve really thought of something and carried it all the way to this point with the help of a lot of people on this team, it would never have been possible without the support of our team,” Wyner said. “It’s an exciting time, I’m excited to continue to speak about chain fusion with all of the companies.”
Bitcoin Gains 1.67 Percent to $11,050 Per Coin Amid Liquidity Issue
Bitcoin Rises to $11,050 Per Coin on Friday
Bitcoin rose above $11,000 per coin on Saturday after weeks of trading in a range, between $10,867 and $10,960 despite liquidity drying up across exchanges.
The cryptocurrency most dominant coin gained 1.67 percent to settle at $11,050 per coin as at 8.04 pm Nigerian time on Saturday.
“Markets are looking weak on drying-up liquidity on exchanges while BTC hardly managed to reach back above the $11,000 level and couldn’t sustain it,” said Jean Baptiste Pavageau, partner at trading firm ExoAlpha.
Indeed, major USD/BTC exchange volumes are looking feeble, with Friday tallying a $211 million total so far while daily averages the past month have been $364 million.
Rupert Douglas, head of institutional sales at crypto brokerage Koine, said he is concerned that stock markets are about to start correction that could potentially hurt crypto as investors look to unload risky assets.
“I think equities are headed lower and if that happens digital assets will get sucked down, too,” Douglas told CoinDesk. “The tech shares are too frothy,” he added
Another factor crypto investors are tracking: Bitcoin dominance, a measure of its market capitalization as a percentage of total cryptocurrencies. September has seen bitcoin hit 2020 dominance lows, hovering around 60% Friday.
“So far, bitcoin dominance has largely been sliding downwards since the beginning of 2020,” said Andrew Tu, an executive at crypto quant trading firm Efficient Frontier. “It will be interesting to see if we see a short-term reversion of the bitcoin dominance back upwards.”
Pavageau of ExoAlpha explained that Decentralized Finance (DeFi) is captivating the crypto market, and that is causing decline in bitcoin.
“The market is focused on DeFi. It seems that locking value is also draining liquidity from exchanges as traders are noticing higher slippage when executing in the market,” Pavageau said. “A question to ask might be: Is the total value locked a threat to market liquidity for active traders?”
Nigeria’s Securities and Exchange Commission Moves to Regulate Cryptocurrencies
SEC Says Cryptocurrencies Are Assets Under its regulatory Jurisdiction
Nigeria’s Securities and Exchange Commission (SEC) said it will start regulating to unregulated digit assets like Bitcoin and other cryptocurrencies.
The Commission made the statement on Monday in a publication released on its website.
It said the objective is not to hinder technology or stifle innovation but to create standards that encourage ethical practices and protect both investors and businesses offering digital assets as an investment vehicle.
The statement reads, “Since digital assets offerings provide alternative investment opportunities for the investing public, it is essential to ensure that these offerings operate in a manner that is consistent with investor protection, the interest of the public, market integrity and transparency.”
SEC said it has been conferred powers by section 13 of the Investment and Securities Act, 2007 to regulate investments and securities business in Nigeria.
It, therefore, stated that in line with these provisions, it has adopted a three-pronged objective to regulate market innovation, foster investment safety, deepen market provisions and provide solutions to investment problems.
It said, “Section 13 of the Investment and Securities Act, 2007 conferred powers on the commission as the apex regulator of the Nigerian capital market to regulate investments and securities business in Nigeria.
“In line with these powers, the SEC has adopted a three-pronged objective to regulate innovation, hinged on safety, market deepening and providing solution to problems. This will guide its strategy, its regulations and its interaction with innovators seeking legitimacy and relevance.
“Consequently, the SEC will regulate crypto-token or crypto-coin investments when the character of the investments qualifies as securities transactions.”
Accordingly, the commission explained that virtual assets are securities unless proven otherwise.
It said, “Issuers or sponsors are expected to satisfy the burden of proving that the virtual assets do not constitute securities by making an initial assessment filing.
“However, where the finding of the commission is that the virtual assets are indeed securities (not structured to be exclusively offered through crowdfunding portals or other exempt methods), then the issuer or sponsor must register the digital assets.
“The registration process for virtual assets will therefore involve a two-prong approach – an initial assessment filing to satisfy the burden of proof and a filing for registration proper, either made directly by the issuer or sponsor or where the burden of proof is not satisfied.
“Similarly, all digital assets token offering, initial coin offerings, security token ICOs and other Blockchain-based offers of digital assets within Nigeria or by Nigerian issuers or sponsors or foreign issuers targeting Nigerian investors, shall be subject to the regulation of the commission.”
Paxful Expands Beyond Bitcoin, Adds Tether (USDT) to its Platform
Global peer-to-peer bitcoin marketplace, Paxful, announced today the addition of Tether (USDT) to its platform. USDT belongs to a class of cryptocurrencies known as stablecoins.
A stablecoin is a type of cryptocurrency whose value reflects an existing fiat currency (e.g. US Dollars). The inclusion of USDT, the world’s largest stablecoin by market value, will assist users in combating a volatile market, protecting their assets, and expanding their portfolio.
The industry has seen a surging demand for a stable digital currency amidst fears of an economic recession in both traditional and digital markets. In the last 12 months, Tether has established itself as a champion amongst stablecoins, with a market capitalization of over $13 billion (https://bit.ly/3kdjoHk).
“We consider this a big step for us since this is the first cryptocurrency other than bitcoin we have on the platform,” said Ray Youssef, CEO, and co-founder of Paxful. “We always listen to our customers. We understand that some come to Paxful for wealth generation and turn to crypto for stability when their national currency is affected by inflation. We hope that this can aid them to be more in control of their finances.”
The addition comes with a hedging option, allowing users to instantly convert BTC to USDT and vice versa, helping the users protect their funds during bitcoin price fluctuations.
The company also plans to enable USDT trading on the platform. Same as with the bitcoin (BTC) trading in the Paxful marketplace, users can buy and sell USDT with over 300 payment methods. The USDT balance is accessible via the wallet page, where the current market price for both coins is displayed. The launch of this feature marks Paxful’s first step towards potentially adding new cryptocurrencies in the future.
The company recently announced that the platform Paxful has hit 4.5 million registered wallets, reached 4.6 billion USD in trading volume, and reduced dispute levels to under 1%. Since inception, they have added 1 million users per year and so far in 2020 and are on track to sign up an additional 2 million users by the end of the year.
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